Bitcoin is a bubble we've seen before

Personal correspondance brought in a link to a piece by McClellan Financial Publications, Inc:

http://www.321gold.com/editorials/mcclellan/mcclellan020117.html

This was my reply in email:

Thanks for bringing to my attention! Lets look at the text:

"As a brief review, a bitcoin is a “cryptocurrency”, or a digital asset designed to take the place of money. "

Sure, kind of like an apple is something from a tree designed to take the place of fruit.

"Adherents are attracted to them because of their (supposed) anonymity, and portability without border restriction, or so it has been believed."

Perhaps adherents also like apples because they have a pretty color? Well really, it's because they taste good. Adherents are attracted to publicly issued currency because it can't be counterfeit by anyone not even the banks or the governments. That's the real reason the author of the piece seems to miss.

"So if you are “holding” any Bitcoins (not that anyone can actually hold something so ethereal), your moment to exit and flee is rapidly approaching."

The irony is that the bitcoin is far more physical, and less ethereal, than the (also digital) dollar which is presumably what the author is recommending you trade your coins for. The phrase "exit and flee" is appropriate, but oddly the author is telling you to run away from the exit - back to a seat in a burning theater 🙂